SUBJECT
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Final Reading of an Ordinance of the City of Laredo, Texas, adopting the Annual Budget for Fiscal Year 2026-2027; approving estimated revenues; appropriating funds for authorized expenditures and transfers for the fiscal year beginning October 1, 2026, and ending September 30, 2027; consistent with the financial plan described in said Annual Budget (see Exhibit “A”); approving the Holiday Schedule for Fiscal Year 2026-2027 (see Exhibit “B”); and authorizing the City Manager to implement said Annual Budget.
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VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies): Fiscal responsibility, transparency, public services, infrastructure, public safety, and long-term community investment.
Summary of alignment: The Fiscal Year 2026-2027 Annual Budget serves as the City's financial plan for implementing City Council priorities and supporting the goals of the Viva Laredo Comprehensive Plan. The Annual Budget provides resources for essential municipal services, public safety, infrastructure, employees, community programs, and other City priorities while promoting responsible stewardship of public resources and long-term financial sustainability.
PREVIOUS COUNCIL ACTION
City Council conducted prior special meetings and provided preliminary policy and funding direction to staff in preparation of the Fiscal Year 2026-2027 Proposed Budget, including special meetings held on February 26, March 25, May 21, and June 2, 2026.
The Fiscal Year 2026-2027 Proposed Annual Budget and five-year Capital Improvement Program were presented to City Council and filed with the City Secretary on July 28, 2026.
City Council subsequently conducted Budget on August 20 and 21, 2026, to review the Fiscal Year 2026-2027 Proposed Budget, discuss budget priorities, ask questions, and provide policy direction to staff. No motions approved during the workshops resulted in changes to the Proposed Budget presented for this public hearing.
On September 8, 2026, the Public Hearing and Introductory Ordinance for the Fiscal Year 2026-2027 Proposed Annual Budget was presented to City Council.
BACKGROUND
The City Manager and Budget Department prepared the Fiscal Year 2026-2027 Proposed Annual Budget in accordance with the City of Laredo Charter and applicable state law.
The Fiscal Year 2026-2027 Proposed Annual Budget and five-year Capital Improvement Program were presented to City Council and filed with the City Secretary on July 28, 2026. The Proposed Budget has been available for public review on the City of Laredo website since July 29, 2026, and a physical copy has been available for public inspection at the City Secretary's Office.
Pursuant to the City of Laredo Charter, notice of the Fiscal Year 2026-2027 Proposed Annual Budget and public hearing was published for seven consecutive days, from August 16 through August 22, 2026, providing notice of the public hearing and the availability of the Proposed Budget for public inspection.
City Council conducted Budget Workshops on August 20 and 21, 2026, to review and discuss the Fiscal Year 2026-2027 Propose Annual Budget.
On September 8, 2026, the Public Hearing and Introductory Ordinance for the Fiscal Year 2026-2027 Proposed Annual Budget was presented to City Council.
Pursuant to Texas Government Code §551.043(c), a Taxpayer Impact Statement is included with this agenda item. The statement provides, for the median-valued homestead property, the required comparison of the property tax impact associated with the Fiscal Year 2026-2027 Proposed Budget and a balanced budget funded at the no-new-revenue tax rate. The Taxpayer Impact Statement is provided for purposes of the statutory budget-meeting notice requirement. Consideration and adoption of the City's property tax rate will occur separately in accordance with applicable law.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends that City Council adopt the Fiscal Year 2026-2027 Annual Budget.
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Fiscal Impact
Fiscal Year: FY 2026-2027
Budgeted Y/N?: Yes, Proposed FY 2026-2027 Annual Budget
Source of Funds: All applicable City funds
Account #: All applicable accounts
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Adoption of the Fiscal Year 2026-2027 Annual Budget will appropriate the revenues, expenditures, and balances for City operations and other authorized purposes for the fiscal year beginning October 1, 2026, and ending September 30, 2027, as reflected in the Proposed Annual Budget.